10 Top Global Building And Infrastructure ETFs

The building and infrastructure sector gained some popularity with investors in 2010 due to the logical thinking that both developed (including the US) and developing nations need to make a wide variety of internal improvements especially in the electric grid, engineering, construction, roads and bridges, dams and many other developments.

There aren't that many pure ETF choices in the sector but we'll proceed with this for now given the sector will likely expand in the future. Depending on overall market conditions AUM (assets under management) should expand making these listings more impressive and compelling.

Certainly in emerging markets there is much activity planned. Given current economic conditions in the developed world infrastructure projects can be seen as necessary as existing infrastructure requires improvements. Making investments in these projects as international and domestic economic growth slows is generally believed as important and stimulative while others may argue such hasn't been the case. In Japan in the late 1990s infrastructure spending was high on the list of government spending yet the Japanese economy continued to struggle.

When possible we prefer to feature a technical view of conditions from monthly chart views. Simplistically, we recommend longer-term investors stay on the right side of the 12 month simple moving average. When prices are above the moving average, stay long, and when below remain in cash or short. Some more interested in a fundamental approach may not care so much about technical issues preferring instead to buy when prices are perceived as low and sell for other reasons when high.

CHXX follows the INDXX China Infrastructure Index. The index is a free-float market capitalization weighted stock market index comprised of 30 leading companies that INDXX, LLC determines to be representative of China's infrastructure sector. The fund was launched in February 2010. The expense ratio is .85%. AUM equal $13 million and average daily trading volume is less than 8K shares.

As of early April 2012 the annual dividend yield was 2.37% and YTD return was 14.45%. The one year return was -22.77%.

PKB follows the dynamic Building & Construction Intellidex Index, which is an "enhanced" index designed to provide capital appreciation by evaluating companies based on fundamental growth investment timeliness, valuations and risk factors. The fund was launched in October 2005. The expense ratio is .60%. AUM equal $32 million and average trading volume is less than 14K shares.

As of early April 2012 the annual dividend yield was .12% and YTD return was 15.19%. The one year return was -5.03%.

FLM follows the ISE Global Engineering and Construction Index, which targets companies engaged in large civil and capital projects including utilities, transportation, telecommunications, commercial, residential and infrastructure. The fund was launched in October 2008. The expense ratio is .70%. AUM equal $35.9 million and average daily trading volume is 7.3K shares.

As of early April 2012 the annual dividend was 1.8% and YTD return was 9.99%. The one year return was -18.52%.

GII follows the Macquarie Global Infrastructure 100 Index, which was created by FTSE to include companies in the infrastructure management, ownership of assets there to include utilities. The fund was launched in January 2007. The expense ratio is .59%. AUM equal $36 million and average daily trading volume is less than 5K shares.

As of early April 2012 the annual dividend yield was 4.51% and YTD return 1.11%. The one year return was -2.40%.

INXX follows the INDXX India Infrastructure Index, which includes the leading 30 companies involved construction, engineering and utilities, to name a few. The fund was launched in November 2010. The expense ratio is .85%. AUM equal $61 million (which compares poorly with $81 million in July and mostly from a NAV decline like others) and average daily trading volume is 20K shares.

As of early April 2012 the annual dividend yield was .55% and YTD return 29.05%. The one year return was -24.94%.

BRXX follows the INDXX Brazil Infrastructure Index, which consists of the 30 leading companies that INDXX, LLC deems to represent the infrastructure sector in Brazil. The fund was launched in February 2010. The expense ratio is .85%. AUM equal $89.6 million and average daily trading volume is 30K shares.

As of early April 2012 the annual dividend yield was 4.05% and YTD return of 18.85%. The one year return was -3.95%.

PXR follows the S-Network Emerging Infrastructure Builders Index, which includes construction and engineering, machinery, materials, heavy electrical equipment, mining and industrial machinery and steel. The fund was launched in October 2008. The expense ratio is .75%. AUM equal $124.6 million and average daily trading volume is 13.5K shares.

As of April 2012 the annual dividend yield was 1.61% and YTD return 15.39%. The one year return was -21.31%.

MLPI follows the index of the same name. It is designed to give investors exposure to the infrastructure component of the Master Limited Partnership asset class. Constituents each earn at least 50% of EBITDA from assets that are not directly exposed to changes in commodity prices.

The index is disseminated by the New York Stock Exchange and is a composite of 25 energy infrastructure MLPs. The fund was launched in March 2010. The expense ratio is .85%. AUM equal $243.3 million and average daily trading volume is 37K shares. As of April 2012 the annual dividend yield was 4.75% and YTD return was 2.12%. The one year return was 11.48%.

Established linked index even if "enhanced"Good performance or more volatile if "enhanced" indexAverage to higher fee structureGood portfolio suitability or more active management if "enhanced" indexDecent liquidity

Enhanced or seasoned indexLess consistent performance and more volatileFees higher than averagePortfolio suitability would need more active tradingAverage to below average liquidity

Index is newIssue is new and needs seasoningFees are highPortfolio suitability also needs seasoningLiquidity below average

The infrastructure sector has been negatively affected by fears over a global slowdown, which hurts the sector in the short-term. Longer-term, one favorite way for government authorities to stimulate better economic growth is through higher spending in this category. This has yet to materialize and of course there are pundits who believe this activity is ineffective. Nevertheless, it takes time for spending to kick-in and projects to be started given red tape and other issues.

It's also important to remember that ETF sponsors have their own competitive business interests when issuing products which may not necessarily align with your investment needs. New ETFs from highly regarded and substantial new providers are also being issued. These may include Charles Schwab's ETFs and Scottrade's Focus Shares which both are issuing new ETFs with low expense ratios and commission free trading at their respective firms. These may also become popular as they become seasoned.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.